Subprime auto lender and semi-annual issuer in the private term markets, Long Beach Holdings Corp., is planning an initial public offering in the near future that will lead to the company's entrance into the public arena, sources said. The Paramus, N.J.-based firm is not to be confused with Washington Mutual unit Long Beach Mortgage, although the two are both former subsidiaries of AmeriQuest that were divested.
The IPO, led by Friedman Billings Ramsey, will raise $110 million for the firm, according to the offerings shelf registration statement filed Oct. 18 with the Securities & Exchange Commission. Long Beach typically securitizes up to $400 million a year in the private fixed-income markets. Last week Long Beach sold $189 million of auto paper privately via Greenwich Capital Markets.